Sonali Aansh declares 100% stock dividend again

Sonali Aansh Industries, a publicly listed exporter of jute products, has once again declared a 100% stock dividend for the fiscal 2022-23, after securing approval from the Bangladesh Securities and Exchange Commission (BSEC). 

In the previous 2021-22 fiscal, the company had paid the same stock dividend to its shareholders.

Md Habibur Rahman, company secretary at Sonali Aansh, told The Business Standard, "With the BSEC's nod, we declared the stock dividend to increase our paid-up capital."

The company's profit grew 97% year-on-year to Tk2.09 crore in FY23. Hence, it declared a 110% dividend — 100% stock and 10% cash, according to the company's price sensitive information. The company's diluted earnings per share stood at Tk3.86 in FY23.

The stock dividend has been declared from its accumulated profit and cash dividend from the profit of FY23.

A stock dividend is a payment to shareholders that is made in additional shares instead of cash. The stock dividend rewards shareholders without reducing the company's cash balance.

Sonali Aansh has scheduled an online annual general meeting (AGM) on 31 December. The record date has been fixed on 7 December.

The company has informed that it has increased its authorised capital up to Tk50 crore after obtaining approval from the Registrar of Joint Stock Companies and Firms.

The board has also decided to revalue all its properties and assets for determining its fair value properly and record it in the books of accounts of the company.